Evan Yee

Evan Yee from Raymond James sought an update on USCB Financial Holdings' expense outlook, considering new bonus plans, sales incentives, retention programs, and anticipated hires. He also asked for the overall fee outlook and its contributing factors.

Answer

CFO Robert Anderson provided an adjusted expense baseline of $13.2 million for Q4 2025, expecting a gradual increase in Q1 2026 due to new hires, while aiming for a low 50% efficiency ratio. For non-interest income, he anticipated a range of $3.5-$3.8 million in coming quarters, driven by wire fees, new correspondent banks, swap fees, and treasury management business.

Evan Yee from Raymond James inquired about USCB Financial Holdings' expense outlook, considering new bonus plans, sales incentives, retention programs, and anticipated hires. He also asked for an update on the company's fee income outlook, including the various puts and takes and the target range for coming quarters.

Answer

CFO Robert Anderson explained that while Q4 2025 GAAP expenses included annual-type programs booked in the quarter, an adjusted baseline expense of $13.2 million is a good jump-off point for 2026 modeling. He anticipates a gradual increase in expenses through the year due to new hires, aiming for a low 50% efficiency ratio. For non-interest income, Anderson projected a target range of $3.5 million to $3.8 million for 2026, driven by increased wire fees from new correspondent banks, attractive swap fees, and growth in treasury management business.